Aug. 7, 2013
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Traders on the floor of the New York Stock Exchange. / Richard Drew, AP

by Rachel Huggins, USA TODAY

by Rachel Huggins, USA TODAY

Stocks dropped for a second straight day Tuesday as investors parsed the latest comments from Federal Reserve policymakers about when the central bank might start pulling back on its massive bond buying program. And weaker than expected weekly retail sales figures dampened investor sentiment.

IBM dragged the Dow lower following reports that the company would require some workers to take time off this month as hardware sales slow. Credit Suisse also cut its rating on the company. IBM dropped $4.51, or 2.3%, to $190.99.

Retailers took a hit Tuesday. American Eagle plunged 12% after the retailer slashed its earnings forecast in half late Monday, blaming weak sales. The company said cutting prices on clothing to lure in shoppers was hitting its profit margins. American Eagle dropped $2.40 to $17.57.

Other retailers also slumped. Abercrombie & Fitch lost $2.09, or 4%, to $49.57. Urban Outfitters lost $1.20, or 2.8% , to $42.47.

In housing market news, market researcher CoreLogic said Tuesday that home prices rose 11.9% from last June, and were up 1.9% from May. That's a slower increase than between April and May, but still made for a good month.

The yield on the 10-year Treasury note was unchanged from late Monday at 2.64%.

On Monday, the Dow fell 0.3% to 15,612.13. The S&P 500 fell 0.2% to 1,707.14. The Nasdaq composite index gained less than 0.1% to 3,692.95.